Tag Archives: economics

READY FOR PROCESSING

iPhone Photo by Terri Blanke

 

We’ve begun processing our Wagyu calves with a second round of vaccinations for Snake River Farms that we plan to ship in the first week of May. Each calf gets an Electronic Identification (EID) button and a tag to match at the same time. These calves are from our first-calf heifers that we poured the hay to from last July into December because of the short feed and to keep our first-calf heifers in shape to cycle and breed back. We don’t have to run the numbers to know that these calves won’t bring enough to pay for the hay we fed.

 

Every feed season is different, even in a drought.  The Christmas rains saved our bacon, over 3 inches or nearly a third of our rainfall to date. And again, in the nick of time, two storm at the end of February and beginning of March that offered nearly 1 ½ inches.  The three events made pretty decent feed in the corrals above and elsewhere as we approach the end our rainy season—nothing forecast for the next two weeks—proving once again that it’s not the quantity of rain, but the timing that’s most important in the cattle business. 

 

With a shortage of water to irrigate alfalfa in California, hay will be expensive.  Having cut our herd by a third last year (6 inches total), we hope there will be enough old feed to carry us through until November without feeding much hay in our upper country. However, we’ll have to help our younger cows in our lower country where the south and west slopes have already turned brown.  How many will be the question. 

 

We couldn’t keep any replacement heifers last year, and may not this year as the market gets stronger.  We’ll be making lots of decisions in the coming thirty days as we begin to harvest this year’s crop and plan for the next.

 

GRAZING UPDATE

This morning’s circle with salt and mineral for the first-calf heifers in the hills behind the house was not encouraging for the first of March.  The south slopes are short and turning fast and the heifers want, and need, hay, though the calves look OK.

The forecasters have taken Saturday’s rain away, but next week still appears to be wet.  We know that this ground is resilient, but with only March and April left as our only chance for real grass, this season’s future looks bleak and will probably require early weaning and a heavy culling of our cow herd, as there will be little old feed leftover to sustain these cows through summer and fall.

From an economic perspective, it costs around $500+ to keep our first and second calf heifers for a year, then add $400 for hay plus labor since August, an $850 calf won’t pencil out. Furthermore, with minimal snowpack and only four inches of rain this season, irrigation water will be expensive and the price for summer alfalfa high. Whether one believes in Climate Change or not, the trend for the last decade has been drought, (all across the West), the worst I’ve seen in my lifetime here, where losing money takes all the romance out of raising cattle.  Nevertheless, we’re in it for the long haul and hope for the better days.